FTSE 100 Holds Steady as US Markets Rally Ahead of Critical Tech Earnings

The FTSE 100 and US stock markets displayed remarkable resilience in early April 2025, bouncing back from geopolitical and economic turbulence. With tech giants set to report earnings throughout the month, investors are bracing for clues about corporate health amid slowing global growth and trade policy uncertainty.

Market Resilience Amid Turbulence
The FTSE 100 climbed 0.6% to 8,328.60 on a Tuesday, extending its seven-day winning streak, while the FTSE 250 dipped slightly. Across the Atlantic, the Dow Jones Industrial Average surged 2.1%, and the S&P 500 and Nasdaq both rose 2.1% and 2.2%, respectively, rebounding from Monday’s losses. The rally followed U.S. President Donald Trump’s aggressive criticism of Federal Reserve Chair Jerome Powell, whose potential policy shifts now loom larger over markets. Trump’s calls for interest rate cuts to “jumpstart the economy” weakened the dollar, which slid to JPY140.73 against the yen, while the euro and pound strengthened.

The International Monetary Fund (IMF) dampened optimism with revised growth forecasts: the UK’s 2025 GDP growth was cut to 1.1% from 1.6%, citing U.S. tariff disruptions, while U.S. growth was slashed to 1.8%, down 0.9 percentage points from January. These downgrades underscore the fragility of the global economy as tech firms prepare to reveal their 2026 outlooks.

Tech Earnings: The Month’s Make-or-Break Moment
April’s tech earnings season promises to test market optimism. Key dates include:
- April 23: Tesla, Boeing, Alphabet, and PepsiCo kick off reporting.
- April 25: Amazon, Microsoft, and Apple deliver results, with their guidance on 2026 critical for investor sentiment.
- Late April–Early May: NVIDIA (May 2), Intel, and AMD follow, rounding out the tech-heavy calendar.

Analysts warn that earnings misses or cautious guidance could reignite fears of a global slowdown. For instance, if Apple’s iPhone sales or Amazon’s cloud computing revenue fall short of expectations, it could trigger a tech selloff. Conversely, strong results might fuel a broader market rally.

Sector Spotlight: Winners and Losers
The FTSE’s gains were uneven. Experian rose 2.5% on positive cross-Atlantic sentiment after U.S. peer Equifax reported strong results. ITM Power surged 8.3% after upgrading revenue and cash flow forecasts for its green hydrogen systems, benefiting from the energy transition push. Meanwhile, DCC plummeted 4.5% after analysts criticized its GBP1.05 billion sale of its healthcare division as underpriced.

In contrast, Admiral gained 0.9% after offloading its U.S. motor insurance business, highlighting the sector’s mixed performance.

The Fed, BoE, and the Dollar’s Role
Trump’s attacks on Powell have intensified scrutiny of U.S. monetary policy. If the Fed signals a rate cut, it could further weaken the dollar, boosting dollar-denominated commodities like gold (up to USD3,425.98/oz) and oil (USD67.62/barrel). In the UK, the IMF’s growth downgrade has raised expectations for BoE rate cuts, potentially supporting the FTSE’s cyclical stocks.

Conclusion: Earnings Will Decide the Next Move
The FTSE 100 and U.S. markets have shown surprising resilience in April 2025, but their trajectory hinges on tech earnings. With the IMF’s growth warnings and Trump’s Fed criticisms amplifying uncertainty, investors will scrutinize every earnings call for signs of corporate strength—or fragility.

The stakes are high. If tech giants like Apple and Microsoft deliver robust 2026 guidance, markets could rally further. However, a single miss—such as Amazon’s cloud division underperforming—could spark a sell-off, especially with the IMF’s 1.8% U.S. growth forecast already factoring in modest expansion.

The data is clear: the FTSE 100’s seven-day streak and the S&P 500’s 2.1% jump on April 23 were fueled by hope, not certainty. Until tech earnings prove the economy can withstand trade wars and slowing demand, markets will remain on edge. The next few weeks will determine whether optimism or caution prevails.